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XRP Just Dropped Below Crucial Support Level

Thu, 30/05/2024 – 13:41

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The situation on the XRP chart is swiftly getting worse; the asset host lost its ground at the 50 EMA and is now on the verge of entering freefall mode. In case of a breakdown from here, the asset may start its movement toward the $0.4 price threshold, and in that case would cause some serious concerns for investors. Luckily, the volume is also suppressed, which may hint at the lack of bearish conviction for now. 

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The 50-day, 100-day and 200-day moving averages, as well as other important moving averages, are all slightly below where XRP is currently trading at about $0.52. As the price tries to hold above these crucial levels, this positioning points to a strong bearish trend. 

XRPUSDT
XRP/USDT Chart by TradingView

The bearish sentiment is further highlighted by the fact that the 50 EMA, which was previously acting as support, is now acting as resistance. The market sentiment is neutral to slightly bearish, as indicated by the RSI, which is currently trading at 47. 

This RSI level suggests that there is still potential for a price decline before crossing into an oversold area, which may lead to a technical reversal. An analysis of the volume offers a degree of cautious optimism. 

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Itis possible that the selling pressure is not as strong as it could be because of the relatively low trading volume. Bears may not be fully committed to driving the price lower if there is not a spike in volume, which usually follows significant bearish moves. 

The $0.40 mark represents the next major support if XRP breaks below its current level. Maintaining the asset above this psychological barrier will be essential as a decline below it might cause further damage to investor confidence. Positively regaining the 50 EMA and surpassing $0.55 might indicate a possible reversal and draw in buyers.

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